Property Insurers Shouldn't Be Casualties

Property-and-casualty insurers were hit hard by Sandy but look ready to bounce back.

Consensus in the stock market is that Hurricane Sandy left property-and-casualty insurance companies on the hook for a rebuilding tab reaching in the billions. Indeed, share prices of such stocks as Travelers (TRV) have fallen sharply over the past two weeks covering the time both before and after the storm.

But, on a technical basis, the selling seems overdone and these stocks seem cheap relative to the market.